AIG use of hundreds of millions of taxpayer dollars to pay bonuses to its millionaire employees was a predictable result of systemic ethics failure by Democrat leaders in the U.S. House of Representatives, according to Congressman John Carter (R-TX).

Carter tonight (Tuesday) led a series of blistering speeches on the floor of the House detailing multiple cases of ethical violations since Democrats seized control of Congress in January 2007, all with no effective enforcement action by House Speaker Nancy Pelosi (D-CA) or the House Ethics Committee. Carter was joined on the floor by U.S. Representatives Michele Bachmann (R-MN), Virginia Fox (R-NC), Steve Scalise (R-LA), and Lynn Westmoreland (R-GA).

The former Texas judge pointed out that AIG and Democrat Congressional leaders had for years exchanged millions of dollars for legislative favors, and pointed to the case of embattled Ways and Means Chairman Charlie Rangel (D-NY) as prime evidence. Rangel accepted over $110,000 in campaign funds over the years from AIG prior to last year’s $85 billion taxpayer rescue of the company. Rangel also solicited an estimated additional $10 million donation from AIG last year for a building named after Rangel in New York, then changed his position on tax issues to favor the request of AIG.

Carter blasted House leadership for allowing the investigation into these and other ethics questions involving Rangel to drag on without resolution. "We introduced the ‘Rangel Rule’ to allow all taxpayers the same waiver of IRS penalties and interest enjoyed by Chairman Rangel," says Carter. "I’m afraid we’ll have to add a section to allow all Members of this House the same privilege of letting ethics violation complaints just die in Committee, effectively eliminating ethics enforcement for all Members."

"It is important for the American people to have faith and trust in their elected officials," said Fox. "I think there is a great deal of cynicism in this country, and people want to know what they can believe in. Frankly, I think in the last three years or so the American people have really been sold a bill of goods."

Bachmann extended the fight to the Senate, pointing out language inserted in the Obama stimulus bill by Senator Chris Dodd (D-CT) that prohibits the government from blocking the estimated $450 million in AIG bonuses from being paid with taxpayer funds. Bachmann then revealed that Dodd had received $103,000 from AIG in the 2008 election, making Dodd the biggest recipient of AIG largesse in Congress.

"I wonder," asked Bachmann, "when it will be that Congress will finally have hearings on itself for its role in the housing meltdown?"

Carter then drew a direct link between White House Chief of Staff Rahm Emanuel and the Freddie Mac/Fannie Mae securities scandals. Emanuel served on the board of Freddie Mac, ran for Congress with $25,000 in campaign contributions from Freddie Mac, then presided over the White House stimulus package that handed over $200 billion in federal funds to the groups. Like AIG, Freddie Mac paid its CEO an outrageous $19 million, but the White House under Emanuel has failed to call for the return of those taxpayer dollars.

Carter, House Republican Conference Secretary, also brought up the $12 million in TARP funds received by a bank with direct ties to U.S. Rep. Maxine Waters (D-CA), after Waters intervened with the federal government on the banks’ behalf. Waters husband was a board member and owned substantial shares in OneUnited Bank, which received the federal funds even though investigation revealed questionable practices by the bank, including, like AIG and Freddie Mac, excessive compensation to senior executives.

Scalise pointed out that prior to Democrats taking over, Republicans and Democrats were questioning the actions of Freddie Mac and Fannie Mae while "these groups were giving out loans to people who don’t have the ability to pay," then selling the questionable mortgages in securities packages which in turn brought down both the housing and banking industries. But following the Democrat takeover in 2007, investigations into the actions of the organizations were dropped. "These very same people who are screaming the loudest are the same people who voted to give away the taxpayer’s money", said Scalise.

Westmoreland, a regular speaker on the House floor on the congressional ethics issue with Carter, said if the American people start connecting the dots on all the scandals and challenges facing the country, they will start seeing the big picture on what’s happening in Washington. "If they see this picture of all these dots connected, they will see hypocrisy that has come down from Democratic leadership." Westmoreland listed the funds received by Chairman Rangel for tax law changes, the broken promises of President Obama not to hire lobbyists, and the tax and ethical problems of Treasury Secretary Timothy Geithner. "You connect all the dots and you see a chain of events that may seem separate but they are really all tied together."